RE: Back In!8 May 2024 11:57
"In the digital landscape, customer data has become a valuable commodity. Letβs break down how different entities assign value to this data:
Social Platforms:
Companies like Twitter, LinkedIn, and YouTube use user data as a bargaining chip to support their ad sales. These platforms have millions of users, allowing them to control who advertisers can access based on their investment. For instance, in 2020, LinkedIn Marketing Solutions earned over $3 billion in revenue by providing advertisers access to their 700 million+ users, while YouTube raked in $6.9 billion in advertising revenue during the same period1.
Companies:
Companies invest billions in advertising because data sets provide insights into personal preferences, affiliations, family dynamics, politics, and more. Accurate data helps companies tailor messages to the right audience at the right time. Data allows them to better understand customer needs, desires, and pain points, enabling adjustments to products, services, and messaging.
Formulas like Customer Lifetime Value (CLV), retention rate, and customer acquisition costs help quantify the worth of specific customers or customer segments to a company."........
Source: Bing